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Home/Glossary/Futures contract
Trading

Futures contract

Also called: futures

In shortAn agreement to buy or sell an asset at a set price on a future date, used to bet on price or hedge.

Futures let you go long or short without owning the asset, usually with leverage. Crypto traders mostly use perpetual futures, which never expire.

← Funding rateAll terms A–ZGas (fees) →

Related terms

  • Perpetual futures (perps)Futures contracts with no expiry date, kept close to the spot price by regular funding payments.
  • LeverageTrading with borrowed money so that a small price move has a big effect on your position.
  • Open interest (OI)The total value of futures and perpetual positions that are still open.
  • Short (short selling)A position that profits when the price goes down.
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